The Energy Sector Joins Forces with the Industry Sector

15 july 2016

“There is nothing wrong about the fact that large cities in our country were created as major industrial centers: today we need to use industrial capacity to modernize our cities and to ensure that together they can effect economic and social growth,” believes Analytical Center expert Evgeny Gasho. A round table on energy and industrial policy and how together they can create a new impetus for development was held as part of Innoprom-2016 to discuss industrial development, ways to improve energy efficiency and urban development.

Energy consumption needs new regulation mechanisms and merging the energy and industrial policies will not only create a new development trend but will also kick off a completely new vector of development in the national economy, Mr. Gasho believes. A lot of hopes hinge on Russia’s energy strategy that is currently being developed by Ministry of Energy and Ministry of Trade experts in conjunction with numerous other organizations and government agencies.

“The energy strategy is already a breakthrough document as it identifies 5-6 strategic sustainable development vectors for the industrial and energy policies,” said Mr.Gasho.  The document will link the government’s efforts in industry with those in the energy sector, including in the field of energy efficiency, in a completely new way.

“The energy strategy is already a breakthrough document as it identifies 5-6 strategic sustainable development vectors for the industrial and energy policies.”

Evgeny Gasho, Analytical Center for the Government of the Russian Federation

“In effect, what is happening is that for the first time we have got a state policy document that looks at energy efficiency not from the point of view of consuming resources but from the viewpoints of strategic planning,” stressed Aleksey Kulapin, the head of the Department for State Energy Policy of the Ministry of Energy. The plan is that by 2035 Russia will be consuming 40% more energy resources while producing only 20% more energy that it is producing now, with the difference being compensated for by more efficient use, according to Mr. Kulapin.

"The plan is that by 2035 Russia will be consuming 40% more energy resources while producing only 20% more energy that it is producing now, with the difference being compensated for by more efficient use."

Aleksey Kulapin, Ministry of Energy

It was not just the Ministry of Energy and the Ministry of Trade that joined forces to develop the Energy Strategy, the Ministry of Natural Resources made quite a significant contribution with regards to the environmental aspects of the strategy. Important aspects included technical regulations, shift to BAT, attention to the so-called macro regions (Far East, Western Siberia, Kaliningrad, Crimea), energy infrastructure, including energy infrastructure for the development of industry.

Deputy head of the Russian Standards Service Aleksey Kuleshov noted that on July 1 Federal Law No 162-FZ dated June 29, 2015 ‘On the Standardization in the Russian Federation’ went into effect that, among other things, introduces energy efficiency standards. The minimal requirements applied to them have been expanded: now it is not just technical regulations, but also national standards and even technical conditions and the standards of specific organizations that are coordinated with them. The next step will be a single BAT reference that will make work much easier for the industry.

Ministry of Trade representative Oleg Tokarev reminded those present of the link between efficiency and import substitution. As an example, the government official cited the manufacture of components for locomotives at an Urals production facility: their quality proved to be so great that they set a new standard for the manufacture of similar components at Siemens production facilities in Germany.

Government Resolution No 600 dated June 17, 2015 ‘On the Approval of the List of Facilities and Technologies Regarded as High Energy Efficiency Facilities and Technologies’ also made a great contribution to improving the monitoring of the efficiency of equipment produced. The list of high energy efficiency facilities and technologies complied by the Ministry of Trade includes 47 items and it was not manufacturers that were the most active in contributing to the list but rather users of these products, Mr. Tokarev stressed.

Practical steps are being taken in the regions to improve energy efficiency. However, it is important that such initiatives become commonplace. And the energy strategy was mentioned once again in this context. Creating industry clusters, industrial parks, localized production complexes and development corridors, mechanism for private-public partnership, project financing, technical regulations and a number of other mechanism can boost the development of domestic industry, Mr. Gasho believes.

Photo credit: Mariya Stepanova